Crude Oil Price Clings to Support at SMAs Ahead of API Inventories

Without any data directly-related to oil, crude oil price finished the day lower in yesterday’s trading. WTI crude oil CFD closed at $58.20, 57 cents lower than where it opened.

Today, the American Petroleum Institute’s (API) will release its weekly inventories report for the week ending on January 17. A reading which reveals a shortage in crude oil kept in storage by commercial firms could be bullish for the commodity. On the other hand, if the report shows a surplus, we could see crude oil trade higher.

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Crude Oil Price Outlook

On the daily time frame, we can see that the fall on crude oil price stopped short at the confluence of the 100 SMA and 200 SMA. The commodity found support at $57.65 and bounced to retrace some of its losses back to the 23.6% Fib level (when you draw the Fibonacci retracement tool from the high of January 8 to the low of January 15). A bearish close below $57.20 could mean that crude oil price may soon drop to its November 20 and December 2 low at $55.15.

On the other hand, if support at the SMAs hold, a bullish close above the January 15 high at $59.62 may mean that crude oil price could soon trade to its January 8 highs above $65.00

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